Barbados-based Tabit Insurance has secured a $40 million insurance facility entirely capitalized in Bitcoin, marking a first in the insurance industry and opening new doors for digital asset integration in financial services.

A New Chapter in Crypto-Backed Insurance

$40 million fully funded with Bitcoin

Tabit Insurance announced the launch of a groundbreaking $40 million facility capitalized 100% in Bitcoin, calling it an "industry first." This move allows real-time verification by regulators and auditors, offering a level of transparency uncommon in traditional capital structures.

The company will retain all capital in BTC, while policies and premiums will remain denominated in U.S. dollars. This hybrid structure aims to provide the advantages of cryptocurrency’s transparency with the reliability of fiat-based insurance operations.

Why Bitcoin?

The strategic choice of an alternative asset

According to Tabit, Bitcoin provides real-time auditability and superior transparency, making it well-suited for insurance applications. The company believes Bitcoin's architecture can solve critical pain points in legacy financial systems and introduce new channels for insurance funding.

William Shihara, Tabit’s co-founder, emphasized that this move demonstrates strong confidence in Bitcoin and aligns with the company's mission to build a responsive, modern financial platform.

Executive Insights and Vision

A new model led by experienced financial leaders

CEO Stephen Stonberg, who brings experience from Binance, Bittrex, JP Morgan, and Deutsche Bank, stated that Bitcoin offers a way to tap into an untapped source of capital. He described Tabit’s model as a bold attempt to show what the future of insurance might look like when merged with digital assets.

The company's co-founders insist that Bitcoin isn’t just a speculative asset but a strategic reserve tool that can support USD-denominated policies and earn regulated returns.

Licensing, Structure, and Regulatory Confidence

Operating under regulatory clarity

Tabit is incorporated in Barbados and operates as a Class 2 licensed insurer, regulated by the Financial Services Commission. It functions as a segregated cell company, which provides flexibility and risk isolation across different insurance portfolios.

This setup allows Tabit to offer BTC-backed liability coverage while guaranteeing dollar-based returns, positioning it as a pioneering force in crypto insurance.

Implications for Crypto and Institutional Finance

What this means for the broader financial ecosystem

Tabit’s initiative signals growing maturity in the digital asset sector, particularly as institutional players seek reliable ways to integrate crypto into legacy frameworks. As financial innovation continues to evolve, more companies may look to hybrid capital structures that combine fiat stability with blockchain advantages.

This model could soon inspire others in the insurance space and beyond to reconsider how capital is raised, held, and reported in the modern financial era.